UncategorizedComments Off on U.S. To Sell Remaining GM, Berkshire Bought In

Dec192012

General Motors (GM) has agreed to buy back 200 million shares from the U.S. Treasury at $27.50 per share, or $5.5 billion. The U.S. Treasury has also announced plans to exit its remaining 300 million share position in GM over the next 12-15 months.

Berkshire Hathaway reported an investment of 15 million shares of GM as of September 30, 2012. This holding, currently valued at over $400 million, was likely purchased by either Todd Combs or Ted Weschler. Combs and Weschler were recently hired by Warren Buffett as portfolio managers for Berkshire. GM shares are up almost 10% in trading today.

UncategorizedComments Off on Berkshire Hathaway Buys Back $1.2 Billion of its Shares at $131,000 Per Share

Dec122012

Berkshire Hathaway announced the purchase of $1.2 billion of its Class A shares at $131,000 per share. Berkshire also raised the price limit for repurchases to 120% of book value from the previous limit of 110%. The book value of Berkshire on September 30, 2012 was $111,718 per share. This implies that Berkshire may buy back shares at prices up to $134,000 per share.

During the past two weeks, Berkshire Hathaway has added $185 million to its position in DaVita HealthCare Partners (DVA), and now owns 14% of the company. Berkshire’s stake in DVA is currently valued at over $1.4 billion. This investment has apparently been made by Ted Weschler, one of Warren Buffett’s two recently hired portfolio managers. During the previous 10 years, DVA was consistently one of Mr. Weschler’s largest investments in the hedge fund that he managed, Peninsula Capital. DVA is comprised primarily of kidney dialysis centers in the United States. It has also recently been expanding into physician networks and international markets.

Since Berkshire’s steady accumulation of DVA shares is reminiscent of its acquiring a large stake in Burlington Northern Santa Fe prior to its purchase of the entire company, could a friendly acquisition of DVA take place in the near future?